Colorado Overhauls Record Keeping Requirements for Property Owners' Associations
The Colorado legislature recently adopted a bill amending the Colorado Common Interest Ownership Act (CCIOA). House Bill 12-1237, which currently awaits Governor Hickenlooper’s signature, overhauls the record keeping requirements imposed upon Colorado’s property owners’ associations under CCIOA. Generally speaking, the requirements of this bill are more detailed than CCIOA’s old provisions on record keeping, and speak to topics previously covered such as financial records and records of member and board meetings. In addition, the bill addresses additional types of records and clarifies which records must be provided and must not be provided to members upon request, and which records can, at the association’s option, be withheld.
Some of the new types of records specifically addressed in the bill include records related to construction defects. The bill requires that property owners’ associations keep records of claims for construction defects and amounts received pursuant to settlement of those claims and that those records be made available to members upon request. The bill also requires that when action is taken by the board of directors without a meeting, the property owners’ association maintain all written communications among the board members that are directly related to those actions, which presumably includes emails. These records must be provided to members upon request.
The records that the board of directors may withhold, at its option, include, among other things, communications with legal counsel that are otherwise protected by the attorney-client privilege, records related to an executive session of the board of directors and records related to transactions to purchase goods or services that are currently under negotiation. Those items that must be withheld from members include personal information related to employees or members (salary, medical information, bank account information, phone numbers, email addresses, drivers license numbers and social security numbers). Because email communication is so prevalent today, property owners’ associations will need to take precautions not to disclose email addresses of its members under the new bill. Note, however, the email addresses of board members must be provided to any owner who requests the information.
Assuming this bill is signed by Governor Hickenlooper (and not challenged by referendum), its provisions will take effect January 1, 2013.